Nidec, Foxconn, Foxtron In Discussions To Establish EV Joint Venture

Nidec Corp NJDCY agreed to discuss a joint venture (JV) with Hon Hai Technology Group, better known as Foxconn Technology Co Ltd FXCOF, and Foxtron Vehicle Technologies Co., Ltd.
On March 18, 2021, Nidec signed a memorandum of understanding with Foxtron regarding its strategic alliance in developing electric vehicle (EV) drive systems.
This JV aims to ensure a stable supply of traction motors and other automobile motors for Hon Hai, Foxtron and to expand sales opportunities of new markets and customers for Nidec.
They plan to set JV’s Taiwan headquarters within 2022. The main business of the JV will be on the development, production, and sales of traction motor systems and various motor-related products for automobiles.
Nidec revealed confidence that the establishment of the JV will be an essential step in building its foundation for traction motor production target of 10 million units in 2030.
Price action: NJDCY shares are trading higher by 3.28% at $30.25 on the last check Wednesday.